Hi
Maybe someone is in the similar situation or have some advices to share. I tried to find similar case in the internet as well as in here, but as I found some inconsistency in what I read and many articles are from 200x year, I’d dared to write this post.
We are an unmarried couple, both employed with permit B, living together in the flat (kanton Zurich) which we bought this year (50%/50%). In addition we have a baby (with gemeinsame sorgerecht if it is important) who lives with us.
So – the ‘standard family model’ living in own property with a kid, except of the fact that we are not married.
We are both a subject of quellensteuer, however because of the property purchase, I believe that at the end of this year we will be obligated to fill the tax form (separately). For the tax return form, for sure I will use the help of a specialist, but I was wondering if before it, we could do some adaptations which would help. Right now I think we are both Tariff A (after moving in, I just got an info from steueramt thru my employer, that I’m A0, but it was clarified by HR with them so I expect to get A1 soon).
I found some information that in our situation some couples are qualified that one is in tariff C and other in tariff A. This is probably in the situation when we will make a kind of agreement between us and I should then pay her for example 500chf for household an 1500chf for a baby. I can then deduct 1500 monthly from my tax and she should add it as income. On the other website, I found an info that it’s just opposite – she should be C tariffed and I should be A.
Honestly, I’m confused about what should I do and maybe someone here can help or refer me to a trusted tax advisor which can help (I saw the very long thread about accountants but the last post is from 2011).
Maybe this is not that complicated as I think, but well... you never want to mess with tax office, right?
Thanks in advance for any tip/help.
majki
Try Belletax
http://www.belletax.ch/en/ she might be able to help you.
maybe you can share the links to the information you found, then at least we know what you are looking at.
Why don't you just ask at the tax office.
This should be a fairly standard enquiry for them. And in contrast to a tax advisor, they will tell you for free.
I've pestered them with various questions over the years and always found them to be keen to help and to explain things.
I think one thing that is different between Switzerland and most other countries is that the tax offices here are on your side. They smile. They are polite. They understand what it means to be a public service. They like to help you solve problems rather than to make small problems into big problems.
Amogles - you are right, I will try at source. The fact why I didn't think about it at first step is:
a) I'm so-so in German and when I've been there (to deliver some documents when we moved in to the gemainde), the lady at counter was not talking English (she was very nice though).
b) The case when I pay officially my girlfriend some amount for a baby, when we are living together, just so i will be able to deduct it from income (she has to add it to the income, but as she gets less than me when working 60%, it is tax-worth I guess) and save on taxes - it's creative but why Tax office should help me with showing the way to reduce my taxes? Maybe I wrongly assume that they are not on my side.
@Phil - you are right, sorry for that. I will have to google again as my broweser do not collect history well.
The example for this 500/1500 I found here:
https://www.familienleben.ch/leben/f...t-kindern-4212
in the section ''Steuerberechnung für ein unverheiratetes Paar mit gemeinsamem Kind"
Also here Familie 4 (which is the case as Familie 3 for canton ZH):
https://www.beobachter.ch/geld/steue...amilien-sparen
Just if someone wonders. As they own real estate they are subject to normal taxation but still have to pay tax at source as a pre-payment. This means the tax at source tariff are only relevant short term until the tax declaration has been processed and final tax calculated. If you paid more tax at source than you owe you will get a reimbursement, otherwise a bill to pay the remainder.
The final taxation tariffs applicable in such a situation are not A and C (those are for tax at source only) but GT (Grundtarif / Base tariff) and VT (Verheiratetertraif / Married tariff).
https://www.steueramt.zh.ch/internet...ndessteuer.pdf
The websites you linked to do not speak about tax at source but normal taxation.
The married tariff can also be claimed by a single parents (non-married, widowed, divorced, or legally separated) §35 and 38 Zurich tax law:
http://www2.zhlex.zh.ch/appl/zhlex_r..._8.6.97_51.pdf
and as well as by the main contributor of the child's expenses in case the unmarried parents live together (Item 53 of the tax office guidline).
I think the most current guildline from the canton Zurich tax ofice is this one:
https://www.steueramt.zh.ch/internet...zstb-34-1.html
If you life together you can not give financial support for room and board (Item 18 of the guideline).
Child deduction is CHF 6500 (§ 34 tax law).
Child deductions can only be claimed once. If neither pays child support to the other, the child deduction can be split 50:50. (Item 19 of the guideline)
Be aware, that usual in Switzerland, such things change form one canton to the next:
https://www.estv.admin.ch/dam/estv/d...teuerung_d.pdf
aSwissInTheUS - thank you very much for your valuable post.
If I understand correctly, the withholding tax (tax at source) we pay, is for us, nothing else than a prepayment of the tax. What matters after all is the tax declaration which we will do at the end of the year.
So to summarize - in our situation (not married, living together in owned 50:50 property with our baby), we should get either tariff GT or VT.
I assume that in each case, both of us will pay taxes separately, even if we will have tariff VT (married tarrif).
My second assumption is, that if above is true, my goal would be to get the tariff VT rather than GT, as taxes should be lower.
Am i right?
Yes, but for that you have to actually be married (or in a same-sex registered partnership).
Tom
Yes, both of you will be taxed separatly and the tax at source is a prepayment.
Only one of you can have the VT, the other will have standard GT (otherwise you would have a big advantage over a married couple).
Normally the one with the higher income should be on VT while the one with the lower is on GT. Logically the one which claims the child dedctuion will be the one whom the lower VT will be awarded. I do not know how it works in case you split the child detuctions 50:50. That is a question you best ask the cantonal tax authority: https://www.steueramt.zh.ch/internet..._anfragen.html
@Tom - in fact, you don't have to be married. That's the tricky part.
@aSwissInTheUS Thanks a lot for the explanation. If there is a way I can get you a beer - let me know
I will update topic once I will talk with tax authorities at my place. I got 2 PM from people interested in this matter (similar situation).
In my experience, the tax office will help you upon request with filling out the form based on the documents and information you provide. They will not advise how to reduce the bill beyond that.
So if you already use pillar3a payments to pay back the mortgage (you probably want to) they'll show you how to include that into your filing, but they will not tell you to use 3a for that purpose and reduce the tax bill (at least you shouldn't expect them to).
Yeah, this is something i expected. That's why I was at firs tlooking for an info in here or using tax advisor.
Now I know in which direction I should go and I can ask them more detailed questions.
Hi
afaik this will be taxed VT, but deductions will be split (allowance for health care --> 650.-, tax allowance for 1 child [24.1] 4'500/3'250).
If one one the couple is not working, you can ask for an allowance to deduct the full amount (health care ins./Child deduction).
Saving taxes: 2nd pillar / 3rd pillar / renovations are really effective.
Cheers
Andy